Active galactic nuclei (AGNs) and quasars (QSOs) appear to emit roughly equal energy per decade from radio to gamma-ray energies (e.g. Ramaty and Ligenfelter 1982). This argues strongly for a nonthermal radiation mechanism (see Rees 1984). In addition, statistical studies have indicated that the spectra of these objects in the IR-UV and 2 to 50 keV X-ray band, can be fitted very well with power laws of specific indices. These spectral indices do not seem to depend on the luminosity or morphology of the objects (Rothschild et al. 1983; Malkan 1984), and any theory should account for them in a basic and model independent way. If shocks accelerate relativistic protons via the first-order Fermi mechanism (e.g. Axfor 1981), the radiating electrons can be produced as secondaries throughout the source by proton-proton (p-p) collisions and pion decay, thus eliminating Compton losses (Protheroe and Kazanas 1983). As shown by Kazanas (1984), if relativistic electrons are injected at high energies, e+-e- pair production results in a steady state electron distribution that is very similar to that observed in AGNs, independent of the details of injection and the dynamics of the source. The conditions required by this mechanism are met in the shock model of Eichler (1984) and Ellison and Eichler (1984) which allows the self-consistent calculation of the shock acceleration efficiency.